7 Feb 2018
CAD risk reversals adopt a bearish bias
- USD/CAD risk reversals turn positive.
- Signal increase demand for CAD puts.
The USD/CAD one-month 25 delta risk reversals rose to 0.063 yesterday from the previous day's print of -0.025. Also, the recent low stands at -0.30.
The rise to positive territory indicates increased demand for CAD puts and adds credence to the 300-pip rally in USD/CAD spot seen in the last three days.